Enhanced Cash Strategy*
Objectives
- Seeks to generate consistent excess returns over cash market alternatives with limited volatility through relative-value strategies primarily in corporate and structured credit.
- Managed with a disciplined risk management focus and capital preservation bias, while seeking consistent outperformance over money market interest rates.
Available Vechicles
- Separately Managed Account
*The Enhanced Cash Strategy is not a cash equivalent instrument such as a money market. The Enhanced Cash Strategy is not federally guaranteed and may lose value.
Portfolio Management Team
Mark Heppenstall
President & Chief Investment Officer
Zhiwei Ren
Managing Director & Portfolio Manager
Greg Zappin
Managing Director & Portfolio Manager
Characteristics
- The average portfolio duration will normally vary from 0-0.5 years
- Number of Positions: Typically 50-100
- Position Size: Typically 100-200 basis points
- Corporate Issuer Limit: 2%
Key Asset Classes
| Investment-Grade Corporate |
| Asset-Backed Securities (ABS) |
| Commercial Mortgage-Backed Securities (CMBS) |
| Residential Mortgage-Backed Securities (RMBS) |
| Collateralized Loan Obligations (CLO) |
| High Yield Corporate |
Disclosure Statement
Past performance is not indicative of future results. The Enhanced Cash Strategy is not a cash equivalent instrument such as a money market. The Enhanced Cash Strategy is not federally guaranteed and may lose value. Investors should be aware of the additional risks associated with investments in non-diversification, undervalued or overlooked companies and investments in specific industries. In addition, investors should be aware of the additional risks associated with investments in non-investment grade (high yield) debt securities and structured securities, which are subject to greater fluctuations in value and risk of loss of income and principal as a result of interest rate risk and economic risk. Additional risks may include those associated with investing in foreign securities, emerging markets, currencies and derivatives.
Risks associated with derivatives include the risks of the underlying instruments, substantially greater gains and losses than the derivatives’ costs due to the leverage. Short sales are speculative transactions with potentially unlimited losses, and the use of leverage can magnify the effect of losses. Diversification neither assures a profit nor eliminates the risk of loss.
Collateralized Loan Obligations (CLOs) may involve a high degree of risk and are intended for sale to qualified investors only. Investors may lose some or all of the investment and there may be periods where no cash flow distributions are received. CLOs are exposed to risks such as credit, default, liquidity, management, volatility, interest rate and credit risk. Mortgage-backed securities tend to be more sensitive to changes in interest rates than other types of debt securities. Investments in mortgage-backed securities are subject to both extension risk and prepayment risk.
The information herein does not constitute investment advice and the strategy described may not be available to, or suitable for, all investors.
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